Fed Chair refutes Trump criticism of bank regulations

BY
DIRK TRUDEAU
| PUBLISHED:
02-15-2017

Janet Yellen disagreed with President Trump on the security of U.S. banks.

Janet Yellen disagreed with President Trump on the security of U.S. banks.

The Trump administration, as well as many Republican lawmakers, have been highly critical of the regulatory oversight of the U.S. Federal Reserve over Wall Street. Yellen defended the Dodd-Frank Act, which was put into effect after the financial crisis in the 2000 oughts. According to Yellen, banks are much more secure with the Federal Reserve regulations. She also stated that banks in the United States of America have continued to prove profitable and have continued to lend. Some have claimed that the Dodd-Frank Act has made American banks less competitive, which Yellen refuted, pointing out that they were much more secure and profitable than their counterparts on the European continent. Yellen also addressed claims that small businesses have found it more difficult to get loans under the Dodd-Frank Act, a claim that she says there is no data to support. The biggest strength of the current U.S. bank, according to Yellen, is that it can survive. From small fluctuations to severe slumps, Yellen believes that the U.S. lending institution is better suited now to being healthy in the long run.

"I see well capitalized banks that are regarded as safe strong and sound," reportedYellen during a meeting of the Senate Banking Committee.

U.S. President Donald Trump has been highly critical of the Dodd-Frank Act. Earlier in the month, he signed an executive order that commanded the U.S. Treasury Department to reevaluate current financial rules and to report back to him